Your Ultimate Guide to Buying and Selling Electronics
1. Market Big Picture
3. What’s the Best Way to Make Money Selling Electronics?
4. Finding the Most Reliable Electronic Supplier – What to Look For
5. Effective Marketing and Selling Strategies for Electronics
6. Best Platforms for Selling Electronics
Market - Big Picture
Before you set to sell your electronics in a lucrative market, it is important that you are aware of the big picture. Learn about the market and marketing trends to step in successfully. This topic will highlight all these important details.
This is a variable factor and changes depending on the launch of the product. It is common to find a few items trending hot in addition to the ton of other electronic products along with their accessories that are selling steadily. Such products include iPod speakers, plasma TVs, computer parts, etc.
The margin for large items is usually very small. It is challenging to find anything above 5% to 10%. On the other hand, accessories are considered to have much higher prospects with higher margins. In some cases, the margins for accessories could be as high as 70%.
Sell-Through Rate for EBay
Very high: approximately 70%
Who Does this Market Belong To
This market is suitable for sellers who are already operating in the industry. Other than that, it is suited for anyone else with a big budget. You can even direct it towards people willing to sell unbranded electronics or accessories.
As a bottom line, once you have the big picture in front of you, it is easier to identify the pitfalls. Read on to learn more about it.
Unfortunately, the downsides associated with electronics are quite mighty and the statistics covering the new sellers are not impressive enough. According to the statistics, around 70 percent of sellers trying to make it big by selling electronics into the market tend to fail.
Here you will learn about all those pitfalls.
“So Extreme Its Mad” Competition
Do you feel intimidated when you see successful electronic sellers making money?
Electronics is the more competitive category functioning on business platforms. At first glance, it may seem as if all the electronic sellers are making a tidy profit by selling online. If you dig deeper, you will see the real side. This is what is actually going on: the top ranking electronic sellers online are usually a part of the industry already – and are sometimes the wholesalers.
They purchase electronic items in bulk quantities in one go to get the best and lowest prices possible. This makes them extremely competitive on the front end. But since they are the top electronic seller online it means they are making only a few dollars per unit. Now if you look at the bigger picture, the electronic sellers you thought were making a lot of money are only making $6 - $15 per piece whereas they have to spend around $500,000 to purchase the goods in bulk for the lowest prices.
Does that seem lucrative now? Not really!
Do you want to steer clear the lot of fraudulent buyers? If you are dealing with electronics, it’s difficult to pass without attracting fraudulent buyers. The items on electronics category are so attractive and desirable that people tend to bid for even if they weren’t planning to buy it or can’t afford to pay for it.
In addition to that, there are also chances for fraudsters from all over the world to also bid to scam their way into a trending product. Since you are an electronic seller, it is important that you create a margin for your admin time that will be wasted by non-paying bidders and scammers.
It is also important to be careful with fraudulent buyers because they can also skew the statistics and sell-through-rate and prices you find on certain listings. Do not rely on a single platform. Make sure you do your homework and keep your senses open to see what is actually going around you.
You think you were lucky to find such an amazing deal on iPhones, Xboxes, and iPods in China? Are you sure about the authenticity of the products? Thing again! You might be dealing for a fake product. If this is what you are planning to pass on to your customers online at competitive prices, make sure you are ready for lots of refund requests from your buyers. That’s a situation you would never like to see yourself into. If this happens, there is also likelihood that your account online will be suspended in case your customers also report against you.
What’s the Best Way to Make Money Selling Electronics?
Keeping in mind all the pitfalls and the statistics that is against all the electronic sellers, what are the possibilities of making money in this industry and how challenging is it going to be – the next set of questions that should pop up in your head.
If an industry does not seem promising, there’s no point in heading into that direction. Every industry has its downsides and positive statistics does not guarantee you will do great. There are a number of factors that helps in running a successful, smooth business. As far as electronics is concerned, you can become a successful seller here if you know what to do. In order to make money from selling electronics, follow the tips below and steer clear of the pitfalls.
Check them out:
Purchase in Bulk/Large Quantities
One of the best ways to compete with businesses that are already in the industry, make sure you have the budget to purchase stock in large quantities. Your prior experience in the same industry will also come in handy with the bulk buying strategy. This way, you can stand neck-to-neck with the other successful sellers in the market. Other than that, you need to find the right platform for selling too. This will give you a clearer, more realistic picture.
Using a Website for Selling Electronics
Using a reliable website such as FINAL Wholesale to sell electronic items is another way to become a successful seller. This will allow you to enter the market without much of a hassle. Moreover, this way you won’t be alone to compete on the prices. Using such websites for sales will also give you more control over scammers and fraudulent buyers.
All you have to really pay attention to is to be competitive against the big brothers, which means that liquidation or purchasing in bulk will continue to be essential.
What’s the purpose of creating deals and packages? It works for sellers as this technique has a psychological impact. It works for retailers to improve their profit margins by trapping their customers into a deal or package. This is to show the customer or buyer that they are getting a great deal on something and with a little more money they can enjoy lots of extras.
This is easier with electronics because you can always create a package by adding accessories with them. For instance, you can improve the sales and profits of an iPod by creating a package deal that includes a matching pair of accessories such as skins, speakers, car chargers, headsets, etc.
It is very common to find such deals on clothing and food. Remember how McDonalds offer the ‘Upsize package’ that offers a larger drink and larger fries with just a little addition. And the hungry customer will be more than willing to pay that amount to enjoy extra food. In reality, the upgrade may only cost them $0.50 and they just charged a bigger profit from the customer who would have been less profitable if he or she had only purchased the regular meal size.
Just like McDonalds, this psychological techniques works wonderfully when it comes to electronics. As mentioned earlier, such products are desirable and attractive and creating packages will just enhance that attraction. Moreover, this technique seems to work with all the different types of products online, but really successful especially for electronics where finding reasons to improve profit margins is essential.
Sell Unbranded Electronics
Let’s bust this myth. An electronic item does not have to carry a brand name to sell well!
This could come as a surprise (or maybe a shock) but brand name does not really make a difference to how an electronic item is sold. In fact, with the market making big switches lately, even iPhones are now manufactured in China and there’s a huge market for Asian items, especially when it comes to electronics.
One of the main reasons for such a twist is the price. Invest in a branded, expensive phone and use it for a year. Now try to sell it and you will not even get half the price you paid for it when you purchased it. The depreciation is way more than you had expected. As a result, you are either stuck with the same phone or forced to sell it to buy another branded, expensive phone – not a very ideal (or wise) situation for anyone.
People identified the Asian market for the electronic items for its cheap prices and satisfactory performance. In addition to the China-made phones, digital cameras, mp4 players, laptops, personal computers and other similar items are really popular are unbranded selling electronic items.
We are not trying to discourage you from offering branded electronic items. In fact, the whole point is to explain how diversifying your product range for a wider market is definitely a smart choice and will work in your favor.
Accessorize your Electronics before Selling (Recommended)
For an electronic seller, diversifying the business idea by also focusing on accessories is another great way to make money in this industry. In addition to offering mobile phones on your product list, add mobile phone accessories, chargers and other cords to capture a wider market. IPod and phone accessories, power cords, data cables, computer components, communication accessories and equipment, and even refurbished electronics can produce healthy profit margins.
Since your focus will also be on bulk buying, accessories are a great deal because you usually find them at very cheap prices when buying in lots. One of the best parts about this is that the sellers can start out offering accessories on their products list by spending only $100.
If you are more concerned about the market, here’s some good news for you. Accessories offer a better markup and helps in capturing the market without a lot of effort. If you have a lot of cheap items on your electronic products’ list (items not more than $30), people do not really keep consider the feedback you have. Therefore, it is easier to step in the market.
Finding reliable electronics supplier can be a daunting task if you don’t know where to start from. Moreover, with so much risk, ensuring you are dealing with the right person may seem like a task in itself. This is where we come in. We only deal with the most reliable and authentic suppliers. So if you want to work with approved electronic suppliers, find out how by registering at FINALWholesale.com.
Finding the Most Reliable Electronic Supplier
What to Look For
Looking for the right electronic supplier? While you can check the list of authentic suppliers at FINAL Wholesale.com, there are various factors you need to keep in mind to find a reliable supplier. Remembering these qualities will keep you safe from fraudulent suppliers on all platforms.
Here are some things you need to remember:
- If you are only planning to deal in branded electronics only, you must find a supplier who is offering them in liquidation or in bulk quantities. That’s the only way you will be able to offer them at competitive prices and keep a profit margin for yourself.
- A reliable supplier will always provide you warranties. This is especially very important for branded electronic items. Not only will warranties guarantee you that you are dealing with the right supplier but will also help your customers believe in your authenticity.
- If your supplier is not willing to provide a warranty for the branded items, there is a risk that the products are fake. Branded electronic items should always come with a Certificate of Authenticity. This is the only way you can guarantee that the brand names would resale.
- For unbranded electronic items or items from liquidation, you must be provided with warranty by a third party such as Square Trade Care Plus. This is only valid in certain situations that you must assess.
- If you find a reliable supplier, aim to establish a long-term professional relationship. It is not only with the manufacturers, even wholesalers are willing to serve a customer with long-term profitable relationship. Keeping this in mind, some wholesalers are skeptical in serving customers over the internet. Therefore, getting your business registered might be helpful for you. This will lift up your profile and increase the likelihood of getting great deals from authentic suppliers.
Effective Marketing and Selling Strategies for Electronics
Becoming a successful electronic seller also required effective marketing and selling strategies. Once you are done finding the right platform, market and supplier, marketing and selling strategies are the next thing you should consider.
Work on this and take your business to the next level.
Here are some great ideas.
High Quality Pictures
Looking for a bigger profit margin by selling the product for a good price? In order to achieve that in a competitive market, it is important that you show customers the right thing.
The quality of your picture matters a lot. Your customers are seeing the actual product through that picture and showing a low quality picture means you are risking the sale and sale price.
According to statistics, the quality of your picture is an important factor that decides how much money you get for a product. Indeed, people judge the product through the quality of picture you show them. This is especially very important for online marketing – since there are a lot of sellers and has a highly competitive environment.
In order to stand out and sell your product at the price you demand (out of all the other sellers who is offering the same thing at a similar or sometimes lower price) focus on the quality of your picture. Spend time and take pictures in high resolution and great lighting to enhance clarity and overall quality. Take a few shots and choose the best one to increase your chances for getting a great deal.
Also, make sure you are not using the pictures available on the internet. Show your customers the real thing. That’s the only way you can convince them to purchase from you.
Some Rules to Follow
As far as the picture and the quality of the picture is concerned, here are some ground rules:
- Take multiple shots from different angles so you have options to pick the best one from.
- Place your product in front of a plain white background. That works best in bringing more clarity to the picture. If you want, you can also use a large piece of craft card too. More conscious? Use a photo tent for best results.
- Don’t forget to add the final finish to your pictures. Cropping is sometimes necessary. You only want to show the item itself in a clear, high-quality picture. Your customers are not interested in seeing your bedroom, kitchen, or your colorful bed cover.
- Invest in some good lighting. This factor is essential for great picture. If you have time and chance, go and take your pictures outdoors in daylight. You can even get some lamps and photo tents for better lighting effects (recommended).
- The size of your picture should be decent – not to small but not to huge either. Achieve the best quality in the size 640 x 480 pixels. This makes the pictures just way more attractive.
- Your customers will run away if they can’t see the product clearly. Do not waste buyer’s time with dark, blurry, or small pictures. If they can’t see what you are offering them, they would look elsewhere. Just do not make this mistake.
- Using stock photos is another big mistake – if you are planning to do so! Your customers already know what the product looks like in the pictures available on the internet. Now they want to see what it ACTUALLY looks like. Show them that through your picture.
Don’t Forget the Description
Details will attract more customers. A lot of tests have been done to see if description plays a role in getting you more customers – and yes, it does. Items with more detailed description will attract more interest. This is because you are giving to people more information about the product you are offering them. Now they know what they are buying just because you have put your work into it. It will definitely sell more.
Assuming that the potential customers are already aware of the product they are looking for will never work in your favor. Sometimes, the best purchase comes from customers who were not even looking for that particular item and just wishes to buy after reading the detailed description of what the product is all about. Do not give up those opportunities.
Provide Package Details
Get into your customers’ shoe and see what you expect from your own services/business. Is there any customer who will be able to resist all the extras he or she is getting just a few more dollars (refer back to the McDonald example)? This is a great way to create a psychological impact on your customers and get them into buying a package deal, which eventually increases your profit margin.
Since package deals stand out as a fantastic value for customers, there’s nothing that could be more attractive than this. So make sure you have a few of them on your list.
Clearly Mention Warranties and Refund Policies
Just like warranties are important for you to trust your suppliers, your customers will require the same safety from you. People do feel safer if they get warranties when investing in electronics. Moreover, refund policies also make customers feel safer and help them trust you more.
In order to establish a long-term relationship with your customers, it is necessary that you put them at ease by showing your professionalism and capability. Clearly mention about the warranties and refund policies so that they are able to trust you. Anticipate their questions and address them in the FAQ and provide them details about the refund and warranty on your profile page.
Best Platforms for Selling Electronics
What are the best places to sell electronics at a good price? In order to capture the market and take your business to the next level, it is important that you identify the right platforms where you can offer your products. Here are some great ideas!
Start with Your Website
Your website is your individuality – that makes you appear more professional and reliable. Having your own website to offer your product is hands down one of the best ways to earn customers and get better prices for electronics.
Compared to the regular online buyers, the customers on your website are not very bargain oriented. They will appreciate your authenticity and value fast shipping, professional customer services and other factors more. There are always these customers who prefer peace of mind over finding cheaper deals on online auctions.
FINAL Wholesale, our own e-Commerce software enables you to create and manage your own online presence through a simple procedure.
eBay stores are another platform that you can use as a professional electronic seller. This platform is more professional as compared to an auction listing and people from around the world check out eBay before buying from elsewhere. It is considered as an expert in the industry where you already have a huge market available for your products.
Another great advantage of using this platform is that your customers cannot easily compare your prices with other sellers on the platform. It works similar to your own website.
There’s no way you can underestimate the importance of eBay auctions to get more exposure and more traffic from your online potential customers. The only downside on this platform is low prices. Therefore, the ultimate goal of sellers using this platform is to push majority of the traffic from the auctions to their eBay stores, where they can charge competitive pricing.